Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
$ q4 G( Y  P8 o* |companies producing Jet fuels but Biofuels. Also no wonder if some of
, N0 x. `7 a3 n* {these oil producer will go bankrupt or out of the business even if
1 P& `/ V3 }+ {1 {! kcrude prices improves. This implies also to good names such as Shell,
7 _. Z% k! `9 V: e# fEXXON, BG, BP, Cheveron ....xyz.. oils

5 M$ s+ k7 W/ d/ m+ ?# o0 O: yRecently OPEC reduced crude oil production twice over just a few
+ U3 X" I) Q+ ]months. There are three wars going on in Gaza, Iraq and Afghandistan.
' \- Q6 G3 F, r& p8 W6 g8 KA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
; \  f& \) k' M4 b4 E; H" C9 c' yof so much news. These reasons are:

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1 F! s" y* i( _5 l. }* K2 @1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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0 g' N: {) i- b2 P1 X2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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- C1 ?3 ?" ~; ^+ N4 P3. New methods of injecting CO2 and surfactants into oil wells is
" e; C  P0 K! V! {' Dbeing used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
; n: {' L5 j; }$ R$ S* {4 m7 Vpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
* O/ C9 L. z. w% \! G, zcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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8 t- X1 c) x$ }3 L) V0 w, T8 V6. There are 99 nuclear reactors in various stages of planning and
, W6 D4 M( B) s$ V5 M* z1 F& Lconstruction around the world at this time. Several hundred more are
9 I5 v! P" D( K' ]6 g1 Texpected to be built in the future. Much of the energy they produce
3 K# z* L/ e: W+ Y& U. lwill replace oil.

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7. Every company in any form of transportaion business is replacing
2 {/ R$ i3 [* s& p( Yolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
/ t4 f2 ?0 }6 Q4 f4 {$ d, Y( lare experiencing 20% to 25% better fuel econony with the new
3 O2 \4 D# ~% i: O) O* c1 ~equipment.


  h; h2 W$ S: FAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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% V) ~" ]9 y% Y4 ?8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
  y* y' n6 n$ m. S3 u* F( X) Oavailable at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


7 M) s, i  G' @  P$ R10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
- o; l! F& L8 {7 H4 G' y2 S& b4 Tchanging. The important thing is that OPEC no longer has the ability
5 T' `2 Z* b+ qto control oil prices.


4 S8 N0 C: y3 G& iWith the above scenario, I still believe that there are under
0 Z: U4 x. e  U# V: }0 c) Yperformed OIL companies and probably they are yet to get the justified
* R) V% I) a/ u  Fvalue .....
; c+ c; c+ y8 t  M! DIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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! D6 C" z% q, }2 p  CThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
4 ^+ K+ I) x, e4 o; x6 x# z- s* A2009 ... FYI-Only